Cathie Wood is an investor whose name is synonymous with ARK Investment Management, or ARK Invest, the fund-management company she co-founded in 2014. ARK’s exchange-traded funds posted spectacular average annual returns through early 2021, but since then, the funds have fallen from their highs. She serves as the company’s chief executive and chief investment officer.
What is Cathie Wood’s net worth?
Cathie Wood’s fortune is largely tied to the performance of the ARK funds. As of June 2022, Forbes estimated Wood to be worth $140 million, down from $400 million in 2021. But other media outlets peg her 2023 net worth at $250 million to $300 million.
Cathie Wood is best known for investing thematically in disruptively innovative tech companies via her suite of ARK ETFs.
Cathie Wood is best known for making big bets on technology by investing in small and large-cap stocks of companies that are engaged in what is known as “disruptive innovation”— ranging from artificial intelligence and genome sequencing to robotics, clean energy, and blockchain. Investing in disruptive technology, she believes, will improve people’s livelihoods.
Disruptive innovation is a term coined by Harvard Business School faculty that first appeared in a Harvard Business Review publication in 1995 to describe “any situation in which an industry is shaken up and previously successful incumbents stumble.” For example, Tesla (TSLA) - Get Free Report took on the auto industry by developing and producing electric vehicles on a large scale. Starting in the late 2010s, Tesla siphoned market share from traditional automakers like Ford (F) - Get Free Report and General Motors (GM) - Get Free Report as they continued to focus on producing vehicles with internal combustion engines.
Catherine Wood graduated summa cum laude with a bachelor’s of science degree in finance and economics from the University of Southern California in 1981. During her education, she studied under economist Arthur Laffer, a proponent of supply-side economics.
For a few decades, she worked in investment management at several notable firms in the industry: AllianceBernstein, Alliance Capital, Tupelo Capital Management, and Jennison Associates.
As a portfolio manager, she focused on what’s known as thematic investing — a strategy based on investing in trends that are expected to play out over the long term rather than investing in specific companies — and she carried that thematic strategy over to ARK with the theme of disruptive innovation.
What is ARK?
ARK is an acronym for active research knowledge, and according to the company’s website, refers to: “ACTIVE management to capitalize on the rapid change innovation creates; an open RESEARCH ecosystem that is freed from sectors, geographies, and market caps to capture the convergence of technology; and the sharing of KNOWLEDGE to gain a deeper understanding of the areas we are researching and investing in.”
ARK is an active fund-management firm that buys shares in publicly traded companies, and some of its ETFs are listed on the all-electronic exchange NYSE Arca. As of August 2023, ARK managed eight funds, totaling $14.7 billion in net assets. Its flagship fund is the $8 billion Ark Innovation ETF (ARKK) - Get Free Report. In early 2022, ARK started a thematic fund that focused on transparency, but that was shut down after seven months in July 2022 due to the lack of a benchmark. Assets under management reportedly peaked at more than $60 billion in 2021.
ARK’s funds and their net assets as of the end of August 2023 are:
ARK Innovation ETF (ARKK): $8,005 Million
ARK Next Generation Internet ETF (ARKW): $1,372 Million
ARK Genomic Revolution ETF (ARKG): $2,802 Million
ARK Autonomous Tech. & Robotics ETF (ARKQ): $1,074 Million
ARK Fintech Innovation ETF (ARKF): $905.8 Million
ARK Space Exploration & Innovation ETF (ARKX): $277.1 Million
The 3D Printing ETF (PRNT): $162.4 Million
ARK Israel Innovative Technology ETF (IZRL): $99.3 Million
How does Cathie Wood make her money?
Cathie Wood mainly makes her money from the fees charged to investors in managing ARK’s funds. For its actively managed ETFs, ARK’s annual expense ratio, or management fee, is 0.75%. That translates to a fee of $7.5 million for every $1 billion invested.
Barron’s reported in 2020 that Wood owns 50% to 75% of ARK, which indicated that based on the 0.75% expense ratio she would have taken home $3.75 million to $5.63 million for every $1 billion in assets before taxes. It’s not known publicly how much of Wood’s personal money went into ARK’s ETFs.
Among other personal assets, Wood has a home — based on public records — in Wilton, Connecticut, where, according to Zillow, the average home value is $1 million.
What is Cathie Wood’s investment strategy?
Cathie Wood focuses on growth, meaning that her funds invest in shares of companies that are focused on growing their businesses even though many are not likely to be profitable in the short term. ARK was built on her premise of taking advantage of opportunities in advances in technology.
Wood focuses on five areas of innovation in particular: artificial intelligence (AI), energy storage, robotics, DNA sequencing, and blockchain technology. Technologies are ready, she says, and companies can take advantage of these advances, because technology overall has vastly improved in the more than two decades since the dot-com bust, and costs are much lower.
ARK states that “thematic investing can offer a low correlation of relative returns to traditional growth strategies and negative correlation of relative returns to traditional value strategies, offering diversification for investors.”
ARK had success with investments in Zoom and Roku during the Covid-19 pandemic, but as interest rates started to rise in 2022, the market’s fortunes as well as ARK’s portfolio started to decline.
Wood has been criticized for failing to capitalize on the stock market run of graphics processor maker Nvidia from early 2023 as investment in companies related to artificial intelligence started to gain momentum.
In 2023, ARK was trimming and, at the same time, bulking up shares in some companies in its ETFs, by buying Meta Platforms (META) - Get Free Report and Robinhood Markets (HOOD) - Get Free Report and selling Tesla and DraftKings (DKNG) - Get Free Report.
How have ARK’s funds performed?
ARK’s funds have endured volatility since before the Covid-19 pandemic. The flagship ARK Innovation ETF rose steadily in market value into 2020 before surging to a record high in early 2021.
The fund’s performance then declined, moving back into 2017 levels in early 2023, as rising interest rates—in response to accelerating inflation—curbed investment in equities. Since its listing in October 2014 to the end of 2022, the fund lost 53%, compared to a 92% gain in the S&P 500 Index.
In the first half of 2023, however, the fund has been on a rebound—gaining 41%.
The ARK Innovation ETF surged in the latter half of 2020 and into early 2021 as interest gathered into shares of companies engaged in “disruptive innovation.”
In addition to focusing on growth, Wood has undertaken a value investing approach. Even though the stock market overall was in a downturn in 2022, ARK added to its positions in existing holdings such as Tesla, despite their poor stock performance, believing that they were undervalued.
Wood maintained her view from late 2022 that over a five-year investment horizon, stocks involved in disruptive technology innovation will outperform—which is in alignment with her thematic investing strategy. At the same time, ARK has also invested in traditional, non-disruptive stocks like GM, betting that the company will eventually switch its focus toward newer tech.
Wood has also doubled down on cryptocurrency, despite steep losses across the industry and failed backers, on the belief that blockchain will lead to decentralized finance and increased transparency in the financial sector.
Still, one prominent investor, hedge fund guru Daniel Loeb, criticized Wood’s comments about focusing on a company’s cash flow for future profitability as outdated. Wood has also disregarded EBITDA, which growing companies such as Uber (UBER) - Get Free Report use to measure profitability despite reporting losses.
BUFFALO, NY- March 11, 2024 – Impact Journals publishes scholarly journals in the biomedical sciences with a focus on all areas of cancer and aging research. Aging is one of the most prominent journals published by Impact Journals.
Credit: Impact Journals
BUFFALO, NY- March 11, 2024 – Impact Journals publishes scholarly journals in the biomedical sciences with a focus on all areas of cancer and aging research. Aging is one of the most prominent journals published by Impact Journals.
Impact Journals will be participating as an exhibitor at the American Association for Cancer Research (AACR) Annual Meeting 2024 from April 5-10 at the San Diego Convention Center in San Diego, California. This year, the AACR meeting theme is “Inspiring Science • Fueling Progress • Revolutionizing Care.”
Visit booth #4159 at the AACR Annual Meeting 2024 to connect with members of the Agingteam.
About Aging-US:
Agingpublishes research papers in all fields of aging research including but not limited, aging from yeast to mammals, cellular senescence, age-related diseases such as cancer and Alzheimer’s diseases and their prevention and treatment, anti-aging strategies and drug development and especially the role of signal transduction pathways such as mTOR in aging and potential approaches to modulate these signaling pathways to extend lifespan. The journal aims to promote treatment of age-related diseases by slowing down aging, validation of anti-aging drugs by treating age-related diseases, prevention of cancer by inhibiting aging. Cancer and COVID-19 are age-related diseases.
Agingis indexed and archived byPubMed/Medline (abbreviated as “Aging (Albany NY)”), PubMed Central, Web of Science: Science Citation Index Expanded (abbreviated as “Aging‐US” and listed in the Cell Biology and Geriatrics & Gerontology categories), Scopus (abbreviated as “Aging” and listed in the Cell Biology and Aging categories), Biological Abstracts, BIOSIS Previews, EMBASE, META (Chan Zuckerberg Initiative) (2018-2022), and Dimensions (Digital Science).
Please visit our website at www.Aging-US.com and connect with us:
NY Fed Finds Medium, Long-Term Inflation Expectations Jump Amid Surge In Stock Market Optimism
One month after the inflation outlook tracked by the NY Fed Consumer Survey extended their late 2023 slide, with 3Y inflation expectations in January sliding to a record low 2.4% (from 2.6% in December), even as 1 and 5Y inflation forecasts remained flat, moments ago the NY Fed reported that in February there was a sharp rebound in longer-term inflation expectations, rising to 2.7% from 2.4% at the three-year ahead horizon, and jumping to 2.9% from 2.5% at the five-year ahead horizon, while the 1Y inflation outlook was flat for the 3rd month in a row, stuck at 3.0%.
The increases in both the three-year ahead and five-year ahead measures were most pronounced for respondents with at most high school degrees (in other words, the "really smart folks" are expecting deflation soon). The survey’s measure of disagreement across respondents (the difference between the 75th and 25th percentile of inflation expectations) decreased at all horizons, while the median inflation uncertainty—or the uncertainty expressed regarding future inflation outcomes—declined at the one- and three-year ahead horizons and remained unchanged at the five-year ahead horizon.
Going down the survey, we find that the median year-ahead expected price changes increased by 0.1 percentage point to 4.3% for gas; decreased by 1.8 percentage points to 6.8% for the cost of medical care (its lowest reading since September 2020); decreased by 0.1 percentage point to 5.8% for the cost of a college education; and surprisingly decreased by 0.3 percentage point for rent to 6.1% (its lowest reading since December 2020), and remained flat for food at 4.9%.
We find the rent expectations surprising because it is happening just asking rents are rising across the country.
At the same time as consumers erroneously saw sharply lower rents, median home price growth expectations remained unchanged for the fifth consecutive month at 3.0%.
Turning to the labor market, the survey found that the average perceived likelihood of voluntary and involuntary job separations increased, while the perceived likelihood of finding a job (in the event of a job loss) declined. "The mean probability of leaving one’s job voluntarily in the next 12 months also increased, by 1.8 percentage points to 19.5%."
Mean unemployment expectations - or the mean probability that the U.S. unemployment rate will be higher one year from now - decreased by 1.1 percentage points to 36.1%, the lowest reading since February 2022. Additionally, the median one-year-ahead expected earnings growth was unchanged at 2.8%, remaining slightly below its 12-month trailing average of 2.9%.
Turning to household finance, we find the following:
The median expected growth in household income remained unchanged at 3.1%. The series has been moving within a narrow range of 2.9% to 3.3% since January 2023, and remains above the February 2020 pre-pandemic level of 2.7%.
Median household spending growth expectations increased by 0.2 percentage point to 5.2%. The increase was driven by respondents with a high school degree or less.
Median year-ahead expected growth in government debt increased to 9.3% from 8.9%.
The mean perceived probability that the average interest rate on saving accounts will be higher in 12 months increased by 0.6 percentage point to 26.1%, remaining below its 12-month trailing average of 30%.
Perceptions about households’ current financial situations deteriorated somewhat with fewer respondents reporting being better off than a year ago. Year-ahead expectations also deteriorated marginally with a smaller share of respondents expecting to be better off and a slightly larger share of respondents expecting to be worse off a year from now.
The mean perceived probability that U.S. stock prices will be higher 12 months from now increased by 1.4 percentage point to 38.9%.
At the same time, perceptions and expectations about credit access turned less optimistic: "Perceptions of credit access compared to a year ago deteriorated with a larger share of respondents reporting tighter conditions and a smaller share reporting looser conditions compared to a year ago."
Also, a smaller percentage of consumers, 11.45% vs 12.14% in prior month, expect to not be able to make minimum debt payment over the next three months
Last, and perhaps most humorous, is the now traditional cognitive dissonance one observes with these polls, because at a time when long-term inflation expectations jumped, which clearly suggests that financial conditions will need to be tightened, the number of respondents expecting higher stock prices one year from today jumped to the highest since November 2021... which incidentally is just when the market topped out during the last cycle before suffering a painful bear market.
Homes listed for sale in early June sell for $7,700 more
New Zillow research suggests the spring home shopping season may see a second wave this summer if mortgage rates fall
The post Homes listed for sale in…
A Zillow analysis of 2023 home sales finds homes listed in the first two weeks of June sold for 2.3% more.
The best time to list a home for sale is a month later than it was in 2019, likely driven by mortgage rates.
The best time to list can be as early as the second half of February in San Francisco, and as late as the first half of July in New York and Philadelphia.
Spring home sellers looking to maximize their sale price may want to wait it out and list their home for sale in the first half of June. A new Zillow® analysis of 2023 sales found that homes listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical U.S. home.
The best time to list consistently had been early May in the years leading up to the pandemic. The shift to June suggests mortgage rates are strongly influencing demand on top of the usual seasonality that brings buyers to the market in the spring. This home-shopping season is poised to follow a similar pattern as that in 2023, with the potential for a second wave if the Federal Reserve lowers interest rates midyear or later.
The 2.3% sale price premium registered last June followed the first spring in more than 15 years with mortgage rates over 6% on a 30-year fixed-rate loan. The high rates put home buyers on the back foot, and as rates continued upward through May, they were still reassessing and less likely to bid boldly. In June, however, rates pulled back a little from 6.79% to 6.67%, which likely presented an opportunity for determined buyers heading into summer. More buyers understood their market position and could afford to transact, boosting competition and sale prices.
The old logic was that sellers could earn a premium by listing in late spring, when search activity hit its peak. Now, with persistently low inventory, mortgage rate fluctuations make their own seasonality. First-time home buyers who are on the edge of qualifying for a home loan may dip in and out of the market, depending on what’s happening with rates. It is almost certain the Federal Reserve will push back any interest-rate cuts to mid-2024 at the earliest. If mortgage rates follow, that could bring another surge of buyers later this year.
Mortgage rates have been impacting affordability and sale prices since they began rising rapidly two years ago. In 2022, sellers nationwide saw the highest sale premium when they listed their home in late March, right before rates barreled past 5% and continued climbing.
Zillow’s research finds the best time to list can vary widely by metropolitan area. In 2023, it was as early as the second half of February in San Francisco, and as late as the first half of July in New York. Thirty of the top 35 largest metro areas saw for-sale listings command the highest sale prices between May and early July last year.
Zillow also found a wide range in the sale price premiums associated with homes listed during those peak periods. At the hottest time of the year in San Jose, homes sold for 5.5% more, a $88,000 boost on a typical home. Meanwhile, homes in San Antonio sold for 1.9% more during that same time period.
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